As of 2025 recipients of Centrelink pensions in Australia have seen modest but meaningful increases to their payments and eligibility thresholds. These adjustments aim to help keep payments in line with rising living costs and make more people eligible for support
Indexation of Age Pension in March 2025
From 20 March 2025 the maximum Age Pension rose by
- $4.60 per fortnight for a single person
- $7.00 per fortnight combined for a couple
which is $3.50 per person
As a result fortnightly totals are now $1149.00 for singles and $866.10 each for couples
This adjustment reflects semi‑annual indexation based on inflation measures and the Pensioner and Beneficiary Living Cost Index
Why the Increase Happened
The uplift is part of Australia’s built‑in indexation system which updates payments every March and September to prevent erosion of support due to inflation. This ensures pensioners maintain real purchasing power over time
Threshold Changes from 1 July 2025
From 1 July 2025 the government raised income and assets thresholds by approximately 2.4 percent to help more people qualify or receive larger payments
Income free limits
- Single full pension threshold rose from $212 to $218 per fortnight
- Couple combined increased from $372 to $380 per fortnight
Assets free thresholds for full pension
- Single homeowner increased from $314000 to $321500
- Single non‑homeowner from $566000 to $579500
- Couple homeowner combined from $470000 to $481500
- Couple non‑homeowner combined from $722000 to $739500
These higher thresholds mean fewer people are asset‑tested out of full pension eligibility
Payment Rates Remained Same 1 July 2025
While thresholds increased the basic Age Pension rate itself stayed the same at $1149.00 per fortnight for singles and $866.10 per person for couples between March and September 2025
How These Increases Help You
- Higher income allowance lets you earn more before your pension is reduced
- Higher asset limits help more retirees qualify for full or part pension
- Payment value holds steady with inflation through planned indexation
Summary of Key Changes
| Change | Date | Impact |
|---|---|---|
| Payment increase | 20 Mar 2025 | Single plus $4.60 fortnight and Couple combined plus $7.00 fortnight |
| Income threshold rise | 1 Jul 2025 | Single free area rises $6 and Couple combined $8 |
| Asset threshold rise | 1 Jul 2025 | Homeowner single plus $7500 and more |
| Work Bonus unchanged | Ongoing | $300 fortnightly work income allowed |
| Next indexation | 20 Sep 2025 | Dependent on inflation indicators |
When Will the Next Indexation Occur
The next official payment review is scheduled for 20 September 2025 using updated inflation and wage data. Any further increase is not guaranteed it depends on indicators at that time
Work Bonus and Income Test
If you still work Centrelink allows a Work Bonus of $300 per fortnight which does not affect your pension
Unused Work Bonus can accumulate up to $11800 in a Work Bank to reduce income test impact on your pension in later years
Deeming Rates and Interest Income
Deeming thresholds were increased in July 2025 for interest earned on savings and investments
- Single new deeming threshold is $64200
- Couple combined is now $106200
Below these thresholds interest is assessed at 0.25 percent above this at 2.25 percent
Who Benefits Most from These Changes
- Singles on full pension gain about $119 per year from the March increase
- Couples get about $182 per year additional income
- People with income or assets just above former cut‑off may now become eligible or receive higher pension rates
What to Do Next
- Check your eligibility again especially if you were recently refused or borderline previously
- Use pension calculators online like those on Services Australia or independent sites
- Report changes in your income or assets so your payment reflects correct eligibility
- Consider talking with a financial adviser if you want help managing pension planning or gifting rules
Conclusion
In 2025 Centrelink Age Pension supports continue to adapt to rising costs of living. While the pension rate has only increased slightly in March there are meaningful gains from higher income and assets thresholds from 1 July 2025. More Australians may now qualify for full or partial payments
If you or someone you help is close to or on the pension check your eligibility under the updated thresholds. Small changes can make a difference to your financial well‑being in retirement
